ý
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
VECTREN
CORPORATION
|
INDIANA
|
35-2086905
|
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification No.)
|
|
One
Vectren Square
|
47708
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
|
Common – Without
Par
|
New
York Stock Exchange
|
Common Stock - Without Par
Value
|
81,024,979
|
January 31, 2009
|
Class
|
Number
of Shares
|
Date
|
AFUDC: allowance
for funds used during construction
|
MMBTU: millions
of British thermal units
|
APB: Accounting
Principles Board
|
MW: megawatts
|
EITF: Emerging
Issues Task Force
|
MWh
/ GWh: megawatt hours / thousands of megawatt hours (gigawatt
hours)
|
FASB: Financial
Accounting Standards Board
|
OCC: Ohio
Office of the Consumer Counselor
|
FERC: Federal
Energy Regulatory Commission
|
OUCC: Indiana
Office of the Utility Consumer Counselor
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IDEM: Indiana
Department of Environmental Management
|
PUCO: Public
Utilities Commission of Ohio
|
IURC: Indiana
Utility Regulatory Commission
|
SFAS: Statement
of Financial Accounting Standards
|
MCF
/ BCF: thousands / billions of cubic feet
|
USEPA: United
States Environmental Protection Agency
|
MDth
/ MMDth: thousands / millions of dekatherms
|
Throughput: combined
gas sales and gas transportation volumes
|
MISO:
Midwest Independent System Operator
|
Mailing
Address:
One
Vectren Square
Evansville,
Indiana 47708
|
Phone
Number:
(812)
491-4000
|
Investor
Relations Contact:
Steven
M. Schein
Vice
President, Investor Relations
sschein@vectren.com
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||
Item
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Page
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|||||
Number
|
Number
|
|||||
Part
I
|
||||||
Part
II
|
||||||
Part
III
|
||||||
Part
IV
|
||||||
107
|
||||||
Date
of summer peak load
|
7/21/2008
|
8/08/2007
|
8/10/2006
|
7/25/2005
|
7/13/2004
|
|||||||||||||||
Total
load at peak (1)
|
1,242 | 1,341 | 1,325 | 1,315 | 1,222 | |||||||||||||||
Generating
capability
|
1,295 | 1,295 | 1,351 | 1,351 | 1,351 | |||||||||||||||
Firm
purchase supply
|
135 | 130 | 107 | 107 | 105 | |||||||||||||||
Interruptible
contracts
|
62 | 62 | 62 | 76 | 51 | |||||||||||||||
Total
power supply capacity
|
1,492 | 1,487 | 1,520 | 1,534 | 1,507 | |||||||||||||||
Reserve
margin at peak
|
20 | % | 11 | % | 15 | % | 17 | % | 23 | % |
(1)
|
The
total load at peak is increased 25 MW in 2007-2005 from the total load
actually experienced. The additional 25 MW represents load that
would have been incurred if the Summer Cycler program had not been
activated. The 25 MW is also included in the interruptible
contract portion of the Company’s total power supply capacity in those
years. On the date of peak in 2008 and 2004, the Summer Cycler
program was not activated.
|
Year
Ended December 31,
|
||||||||||
Average
Delivered
|
2008
|
2007
|
2006
|
2005
|
2004
|
|||||
Cost per
Ton
|
$ 42.50
|
$ 40.23
|
$ 37.51
|
$ 30.27
|
$ 27.06
|
|||||
Cost per
MWh
|
20.84
|
19.78
|
18.44
|
14.94
|
13.06
|
Cypress
|
Oaktown
|
Oaktown
|
||||||||||||||||||
Creek
|
Prosperity
|
Mine
1
|
Mine
2
|
Totals
|
||||||||||||||||
Type
of Mining
|
Surface
|
Underground
|
Underground
|
Underground
|
||||||||||||||||
Mining
Technology
|
Truck
& Shovel
|
Room
& Pillar
|
Room
& Pillar
|
Room
& Pillar
|
||||||||||||||||
Tons
Mined (in thousands)
|
||||||||||||||||||||
2008
|
1,150 | 2,378 | - | - | 3,528 | |||||||||||||||
2007
|
1,433 | 2,632 | - | - | 4,065 | |||||||||||||||
2006
|
1,212 | 2,790 | - | - | 4,002 | |||||||||||||||
County
Located in Indiana
|
Warrick
|
Pike
|
Knox
|
Knox
|
||||||||||||||||
Coal
Reserves (thousands of tons)
|
500 | 32,000 | 50,000 | 38,000 | 120,500 | |||||||||||||||
Average
Heat Content (BTU/lb.)
|
10,500 | 11,300 | 11,100 | 11,300 | ||||||||||||||||
Average
Sulfur Content (lbs./ton)
|
8.0 | 4.0 | 5.6 | 4.8 |
Current
Rating
|
||
Standard
|
||
Moody’s
|
&
Poor’s
|
|
Utility
Holdings and Indiana Gas senior unsecured debt
|
Baa1
|
A-
|
Utility
Holdings commercial paper program
|
P-2
|
A-2
|
SIGECO’s
senior secured debt
|
A-3
|
A
|
Cash
|
Common
Stock Price Range
|
|||||||||||
Dividend
|
High
|
Low
|
||||||||||
2008
|
||||||||||||
First
Quarter
|
$ | 0.325 | $ | 29.20 | $ | 25.35 | ||||||
Second
Quarter
|
0.325 | 32.20 | 26.66 | |||||||||
Third
Quarter
|
0.325 | 31.74 | 26.05 | |||||||||
Fourth
Quarter
|
0.335 | 29.00 | 19.48 | |||||||||
2007
|
||||||||||||
First
Quarter
|
$ | 0.315 | $ | 28.80 | $ | 27.32 | ||||||
Second
Quarter
|
0.315 | 30.06 | 26.42 | |||||||||
Third
Quarter
|
0.315 | 28.50 | 24.85 | |||||||||
Fourth
Quarter
|
0.325 | 30.50 | 26.51 |
Period
|
Number
of
Shares
Purchased
|
Average
Price
Paid
Per Share
|
Total
Number of
Shares
Purchased as
Part
of Publicly
Announced
Plans
|
Maximum
Number
of
Shares That May
Be
Purchased Under
These
Plans
|
||||||||||||
October
1-31
|
- | - | - | - | ||||||||||||
November
1-30
|
33,841 | $ | 27.24 | - | - | |||||||||||
December
1-31
|
- | - | - | - |
Year
Ended December 31,
|
||||||||||||||||||||
(In
millions, except per share data)
|
2008
|
2007
|
2006
|
2005
|
2004
|
|||||||||||||||
Operating
Data:
|
||||||||||||||||||||
Operating
revenues
|
$ | 2,484.7 | $ | 2,281.9 | $ | 2,041.6 | $ | 2,028.0 | $ | 1,689.8 | ||||||||||
Operating
income
|
$ | 263.4 | $ | 260.5 | $ | 220.5 | $ | 213.1 | $ | 199.5 | ||||||||||
Net
income
|
$ | 129.0 | $ | 143.1 | $ | 108.8 | $ | 136.8 | $ | 107.9 | ||||||||||
Average
common shares outstanding
|
78.3 | 75.9 | 75.7 | 75.6 | 75.6 | |||||||||||||||
Fully
diluted common shares outstanding
|
78.9 | 76.6 | 76.2 | 76.1 | 75.9 | |||||||||||||||
Basic
earnings per share
|
||||||||||||||||||||
on
common stock
|
$ | 1.65 | $ | 1.89 | $ | 1.44 | $ | 1.81 | $ | 1.43 | ||||||||||
Diluted
earnings per share
|
||||||||||||||||||||
on
common stock
|
$ | 1.63 | $ | 1.87 | $ | 1.43 | $ | 1.80 | $ | 1.42 | ||||||||||
Dividends
per share on common stock
|
$ | 1.31 | $ | 1.27 | $ | 1.23 | $ | 1.19 | $ | 1.15 | ||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||
Total
assets
|
$ | 4,632.9 | $ | 4,296.4 | $ | 4,091.6 | $ | 3,868.1 | $ | 3,586.9 | ||||||||||
Long-term
debt, net
|
$ | 1,247.9 | $ | 1,245.4 | $ | 1,208.0 | $ | 1,198.0 | $ | 1,016.6 | ||||||||||
Redeemable
preferred stock
|
$ | - | $ | - | $ | - | $ | - | $ | 0.1 | ||||||||||
Common
shareholders' equity
|
$ | 1,351.6 | $ | 1,233.7 | $ | 1,174.2 | $ | 1,143.3 | $ | 1,094.8 |
Per
share earnings contributions of the Utility Group, Nonutility Group, and
Corporate and Other are presented. Such per share amounts are based
on the earnings contribution of each group included in Vectren’s
consolidated results divided by Vectren’s basic average shares outstanding
during the period. The earnings per share of the groups do not
represent a direct legal interest in the assets and liabilities allocated
to the groups, but rather represent a direct equity interest in Vectren
Corporation's assets and liabilities as a whole. These non-gaap
measures are used by management to evaluate the performance of individual
businesses. Accordingly management believes these measures are
useful to investors in understanding each business’ contribution to
consolidated earnings per share and analyzing period to period
changes.
|
The
following discussion and analysis should be read in conjunction with the
consolidated financial statements and notes
thereto.
|
Year
Ended December 31,
|
||||||||||||
(In
millions, except per share data)
|
2008
|
2007
|
2006
|
|||||||||
Net
income
|
$ | 129.0 | $ | 143.1 | $ | 108.8 | ||||||
Attributed
to:
|
||||||||||||
Utility
Group
|
$ | 111.1 | $ | 106.5 | $ | 91.4 | ||||||
Nonutility
Group
|
18.9 | 37.0 | 18.1 | |||||||||
Corporate
& Other
|
(1.0 | ) | (0.4 | ) | (0.7 | ) | ||||||
Basic
earnings per share
|
$ | 1.65 | $ | 1.89 | $ | 1.44 | ||||||
Attributed
to:
|
||||||||||||
Utility
Group
|
$ | 1.42 | $ | 1.40 | $ | 1.21 | ||||||
Nonutility
Group
|
0.24 | 0.49 | 0.24 | |||||||||
Corporate
& Other
|
(0.01 | ) | - | (0.01 | ) |
Year
Ended December 31,
|
||||||||||||
(In
millions, except per share data)
|
2008
|
2007
|
2006
|
|||||||||
OPERATING
REVENUES
|
||||||||||||
Gas
utility
|
$ | 1,432.7 | $ | 1,269.4 | $ | 1,232.5 | ||||||
Electric
utility
|
524.2 | 487.9 | 422.2 | |||||||||
Other
|
1.8 | 1.7 | 1.8 | |||||||||
Total
operating revenues
|
1,958.7 | 1,759.0 | 1,656.5 | |||||||||
OPERATING
EXPENSES
|
||||||||||||
Cost
of gas sold
|
983.1 | 847.2 | 841.5 | |||||||||
Cost
of fuel & purchased power
|
182.9 | 174.8 | 151.5 | |||||||||
Other
operating
|
300.3 | 266.1 | 239.0 | |||||||||
Depreciation
& amortization
|
165.5 | 158.4 | 151.3 | |||||||||
Taxes
other than income taxes
|
72.3 | 68.1 | 64.2 | |||||||||
Total
operating expenses
|
1,704.1 | 1,514.6 | 1,447.5 | |||||||||
OPERATING
INCOME
|
254.6 | 244.4 | 209.0 | |||||||||
Other
income - net
|
4.0 | 9.4 | 7.6 | |||||||||
Interest
expense
|
79.9 | 80.6 | 77.5 | |||||||||
INCOME
BEFORE INCOME TAXES
|
178.7 | 173.2 | 139.1 | |||||||||
Income
taxes
|
67.6 | 66.7 | 47.7 | |||||||||
NET
INCOME
|
$ | 111.1 | $ | 106.5 | $ | 91.4 | ||||||
CONTRIBUTION
TO VECTREN BASIC EPS
|
$ | 1.42 | $ | 1.40 | $ | 1.21 |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
Gas
utility revenues
|
$ | 1,432.7 | $ | 1,269.4 | $ | 1,232.5 | ||||||
Cost
of gas sold
|
983.1 | 847.2 | 841.5 | |||||||||
Total
gas utility margin
|
$ | 449.6 | $ | 422.2 | $ | 391.0 | ||||||
Margin
attributed to:
|
||||||||||||
Residential
& commercial customers
|
$ | 385.1 | $ | 360.9 | $ | 330.2 | ||||||
Industrial
customers
|
52.2 | 48.7 | 48.0 | |||||||||
Other
|
12.3 | 12.6 | 12.8 | |||||||||
Sold
& transported volumes in MMDth attributed to:
|
||||||||||||
Residential
& commercial customers
|
114.8 | 108.4 | 97.7 | |||||||||
Industrial
customers
|
91.5 | 86.2 | 84.9 | |||||||||
Total
sold & transported volumes
|
206.3 | 194.6 | 182.6 |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
Electric
utility revenues
|
$ | 524.2 | $ | 487.9 | $ | 422.2 | ||||||
Cost
of fuel & purchased power
|
182.9 | 174.8 | 151.5 | |||||||||
Total
electric utility margin
|
$ | 341.3 | $ | 313.1 | $ | 270.7 | ||||||
Margin
attributed to:
|
||||||||||||
Residential
& commercial customers
|
$ | 218.6 | $ | 198.6 | $ | 162.9 | ||||||
Industrial
customers
|
82.9 | 78.3 | 70.2 | |||||||||
Municipals
& other customers
|
7.3 | 15.3 | 24.0 | |||||||||
Subtotal:
Retail
|
$ | 308.8 | $ | 292.2 | $ | 257.1 | ||||||
Wholesale
margin
|
$ | 32.5 | $ | 20.9 | $ | 13.6 | ||||||
Electric
volumes sold in GWh attributed to:
|
||||||||||||
Residential
& commercial customers
|
2,850.5 | 3,042.9 | 2,789.7 | |||||||||
Industrial
customers
|
2,409.1 | 2,538.5 | 2,570.4 | |||||||||
Municipals
& other
|
63.8 | 635.1 | 644.4 | |||||||||
Total
retail & firm wholesale volumes sold
|
5,323.4 | 6,216.5 | 6,004.5 |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
Off-system
sales, net of sharing in 2008
|
$ | 23.2 | $ | 16.9 | $ | 14.2 | ||||||
Transmission
system sales
|
9.3 | 4.0 | 3.5 | |||||||||
Other
|
- | - | (4.1 | ) | ||||||||
Total
wholesale margin
|
$ | 32.5 | $ | 20.9 | $ | 13.6 |
·
|
An
inclusive scope that involves all sectors of the economy and sources of
greenhouse gases, and recognizes early actions and investments made to
mitigate greenhouse gas emissions;
|
·
|
Provisions
for enhanced use of renewable energy sources as a supplement to base load
coal generation including effective energy conservation, demand side
management and generation efficiency
measures;
|
·
|
A
flexible market-based cap and trade approach with zero cost allowance
allocations to coal-fired electric generators. The approach
should have a properly designed economic safety valve in order to reduce
or eliminate extreme price spikes and potential price volatility. A long
lead time must be included to align nearer-term technology capabilities
and expanded generation efficiency and other enhanced renewable
strategies, ensuring that generation sources will rely less on natural gas
to meet short term carbon reduction requirements. This new
regime should allow for adequate resource and generation planning and
remove existing impediments to efficiency enhancements posed by the
current New Source Review provisions of the Clean Air
Act;
|
·
|
Inclusion
of incentives for investment in advanced clean coal technology and support
for research and development; and
|
·
|
A
strategy supporting alternative energy technologies and biofuels and
increasing the domestic supply of natural gas to reduce dependence on
foreign oil and imported natural
gas.
|
·
|
Focusing
the Company’s mission statement and purpose on corporate sustainability
and the need to help customers conserve and manage energy
costs;
|
·
|
Recently
executing a 20 year contract to purchase 30MW of wind energy generated by
a wind farm in Benton County,
Indiana;
|
·
|
Evaluating
other renewable energy projects to complement base load coal fired
generation in advance of mandated renewable energy portfolio
standards;
|
·
|
Implementing
conservation initiatives in the Company’s Indiana and Ohio gas utility
service territories;
|
·
|
Participation
in an electric conservation and demand side management collaborative with
the OUCC and other customer advocate
groups;
|
·
|
Evaluating
potential carbon requirements with regard to new generation, other fuel
supply sources, and future environmental compliance
plans;
|
·
|
Reducing
the Company’s carbon footprint by measures such as purchasing hybrid
vehicles, and optimizing generation
efficiencies;
|
·
|
Developing
renewable energy and energy efficiency performance contracting projects
through its wholly owned subsidiary, Energy Systems
Group.
|
Year
Ended December 31,
|
||||||||||||
(In
millions, except per share amounts)
|
2008
|
2007
|
2006
|
|||||||||
NET
INCOME
|
$ | 18.9 | $ | 37.0 | $ | 18.1 | ||||||
CONTRIBUTION
TO VECTREN BASIC EPS
|
$ | 0.24 | $ | 0.49 | $ | 0.24 | ||||||
NET
INCOME ATTRIBUTED TO:
|
||||||||||||
Energy
Marketing & Services
|
$ | 18.0 | $ | 22.3 | $ | 14.9 | ||||||
Mining
Operations
|
(4.6 | ) | 2.0 | 5.0 | ||||||||
Energy
Infrastructure Services
|
11.4 | 9.4 | 4.6 | |||||||||
Other
Businesses
|
(5.9 | ) | 0.3 | (1.1 | ) | |||||||
Synfuels-related
|
- | 3.0 | (5.3 | ) |
(In
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
|||||||||||||||
Utility
Group
|
$ | 250 | $ | 265 | $ | 255 | $ | 270 | $ | 245 | ||||||||||
Nonutility
Group
|
105 | 105 | 60 | 55 | 60 | |||||||||||||||
Total
capital expenditures & investments
|
$ | 355 | $ | 370 | $ | 315 | $ | 325 | $ | 305 |
(In
millions)
|
Total
|
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
|||||||||||||||||||||
Long-term
debt (1)
|
$ | 1,328.3 | $ | 0.4 | $ | 47.5 | $ | 250.0 | $ | 60.0 | $ | 105.0 | $ | 865.4 | ||||||||||||||
Short-term
debt
|
519.5 | 519.5 | - | - | - | - | - | |||||||||||||||||||||
Long-term
debt interest commitments
|
1,094.4 | 81.5 | 81.4 | 77.1 | 60.1 | 55.6 | 738.7 | |||||||||||||||||||||
Nonutility
commodity purchase commitments
|
76.1 | 55.3 | 5.2 | 5.2 | 5.2 | 5.2 | - | |||||||||||||||||||||
Plant
purchase commitments (2)
|
45.1 | 45.1 | - | - | - | - | - | |||||||||||||||||||||
Operating
leases
|
16.6 | 6.6 | 4.5 | 2.3 | 1.5 | 1.2 | 0.5 | |||||||||||||||||||||
Total
(3)
|
$ | 3080.0 | $ | 708.4 | $ | 138.6 | $ | 334.6 | $ | 126.8 | $ | 167.0 | $ | 1,604.6 |
(1)
|
Certain
long-term debt issues contain put and call provisions that can be
exercised on various dates before maturity. These provisions
allow holders the one-time option to put debt back to the Company at face
value or the Company to call debt at face value or at a
premium. Long-term debt subject to tender during the years
following 2008 (in millions) is $80.0 in 2009, $10.0 in 2010, $30.0 in
2011, zero in 2012 and thereafter.
|
(2)
|
The
settlement period of these utility and nonutility plant obligations is
estimated.
|
(3)
|
The
Company has other long-term liabilities that total approximately $244
million. This amount is comprised of the
following: pension obligations $109 million, postretirement
obligations $64 million, deferred compensation and share-based
compensation $28 million, asset retirement obligations $27 million,
investment tax credits $7 million, environmental remediation $6 million,
and other obligations including unrecognized tax benefits totaling $3
million. Based on the nature of these items their expected
settlement dates cannot be
estimated.
|
·
|
Factors
affecting utility operations such as unusual weather conditions;
catastrophic weather-related damage; unusual maintenance or repairs;
unanticipated changes to fossil fuel costs; unanticipated changes to gas
transportation and storage costs, or availability due to higher demand,
shortages, transportation problems or other developments; environmental or
pipeline incidents; transmission or distribution incidents; unanticipated
changes to electric energy supply costs, or availability due to demand,
shortages, transmission problems or other developments; or electric
transmission or gas pipeline system
constraints.
|
·
|
Increased
competition in the energy industry, including the effects of industry
restructuring and unbundling.
|
·
|
Regulatory
factors such as unanticipated changes in rate-setting policies or
procedures, recovery of investments and costs made under traditional
regulation, and the frequency and timing of rate
increases.
|
·
|
Financial,
regulatory or accounting principles or policies imposed by the Financial
Accounting Standards Board; the Securities and Exchange Commission; the
Federal Energy Regulatory Commission; state public utility commissions;
state entities which regulate electric and natural gas transmission and
distribution, natural gas gathering and processing, electric power supply;
and similar entities with regulatory
oversight.
|
·
|
Economic
conditions including the effects of an economic downturn, inflation rates,
commodity prices, and monetary
fluctuations.
|
·
|
Economic
conditions surrounding the current recession, which may be more prolonged
and more severe than cyclical downturns, including significantly lower
levels of economic activity; uncertainty regarding energy prices and the
capital and commodity markets; decreases in demand for natural gas,
electricity, coal, and other nonutility products and services; impacts on
both gas and electric large customers; lower residential and commercial
customer counts; higher operating expenses; and further reductions in the
value of certain nonutility real estate and other legacy
investments.
|
·
|
Increased
natural gas and coal commodity prices and the potential impact on customer
consumption, uncollectible accounts expense, unaccounted for gas and
interest expense.
|
·
|
Changing
market conditions and a variety of other factors associated with physical
energy and financial trading activities including, but not limited to,
price, basis, credit, liquidity, volatility, capacity, interest rate, and
warranty risks.
|
·
|
Direct
or indirect effects on the Company’s business, financial condition,
liquidity and results of operations resulting from changes in credit
ratings, changes in interest rates, and/or changes in market perceptions
of the utility industry and other energy-related
industries.
|
·
|
The
performance of projects undertaken by the Company’s nonutility businesses
and the success of efforts to invest in and develop new opportunities,
including but not limited to, the Company’s coal mining, gas marketing,
and energy infrastructure
strategies.
|
·
|
Factors
affecting coal mining operations including MSHA guidelines and
interpretations of those guidelines; geologic, equipment, and operational
risks; sales contract negotiations and interpretations; supplier and
contract miner performance; the availability of key equipment, contract
miners and commodities; availability of transportation; and the ability to
access/replace coal reserves.
|
·
|
Employee
or contractor workforce factors including changes in key executives,
collective bargaining agreements with union employees, aging workforce
issues, work stoppages, or pandemic
illness.
|
·
|
Legal
and regulatory delays and other obstacles associated with mergers,
acquisitions and investments in joint
ventures.
|
·
|
Costs,
fines, penalties and other effects of legal and administrative
proceedings, settlements, investigations, claims, including, but not
limited to, such matters involving compliance with state and federal laws
and interpretations of these laws.
|
·
|
Changes
in or additions to federal, state or local legislative
requirements, such as changes in or additions to tax laws or rates,
environmental laws, including laws governing greenhouse gases, mandates of
sources of renewable energy, and other
regulations.
|
The
Company has in place a risk management committee that consists of senior
management as well as financial and operational management. The
committee is actively involved in identifying risks as well as reviewing
and authorizing risk mitigation
strategies.
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
At December
31,
|
||||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Current
Assets
|
||||||||
Cash
& cash equivalents
|
$ | 93.2 | $ | 20.6 | ||||
Accounts
receivable - less reserves of $5.6 &
|
||||||||
$3.7,
respectively
|
226.7 | 189.4 | ||||||
Accrued
unbilled revenues
|
197.0 | 168.2 | ||||||
Inventories
|
131.0 | 160.9 | ||||||
Recoverable
fuel & natural gas costs
|
3.1 | - | ||||||
Prepayments
& other current assets
|
124.6 | 160.5 | ||||||
Total
current assets
|
775.6 | 699.6 | ||||||
Utility
Plant
|
||||||||
Original
cost
|
4,335.3 | 4,062.9 | ||||||
Less: accumulated
depreciation & amortization
|
1,615.0 | 1,523.2 | ||||||
Net
utility plant
|
2,720.3 | 2,539.7 | ||||||
Investments
in unconsolidated affiliates
|
179.1 | 208.8 | ||||||
Other
utility & corporate investments
|
25.7 | 26.3 | ||||||
Other
nonutility investments
|
45.9 | 50.7 | ||||||
Nonutility
property - net
|
390.2 | 320.3 | ||||||
Goodwill
- net
|
240.2 | 238.0 | ||||||
Regulatory
assets
|
216.7 | 175.3 | ||||||
Other
assets
|
39.2 | 37.7 | ||||||
TOTAL
ASSETS
|
$ | 4,632.9 | $ | 4,296.4 |
At December
31,
|
||||||||
2008
|
2007
|
|||||||
LIABILITIES & SHAREHOLDERS'
EQUITY
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable
|
$ | 266.1 | $ | 187.4 | ||||
Accounts
payable to affiliated companies
|
75.2 | 83.7 | ||||||
Refundable
fuel & natural gas costs
|
4.1 | 27.2 | ||||||
Accrued
liabilities
|
175.0 | 171.8 | ||||||
Short-term
borrowings
|
519.5 | 557.0 | ||||||
Current
maturities of long-term debt
|
0.4 | 0.3 | ||||||
Long-term
debt subject to tender
|
80.0 | - | ||||||
Total
current liabilities
|
1,120.3 | 1,027.4 | ||||||
Long-term
Debt - Net of Current Maturities &
|
||||||||
Debt
Subject to Tender
|
1,247.9 | 1,245.4 | ||||||
Deferred
Income Taxes & Other Liabilities
|
||||||||
Deferred
income taxes
|
353.4 | 318.1 | ||||||
Regulatory
liabilities
|
315.1 | 307.2 | ||||||
Deferred
credits & other liabilities
|
244.2 | 164.2 | ||||||
Total
deferred credits & other liabilities
|
912.7 | 789.5 | ||||||
Minority
Interest in Subsidiary
|
0.4 | 0.4 | ||||||
Commitments
& Contingencies (Notes 3, 14-16)
|
||||||||
Common
Shareholders' Equity
|
||||||||
Common
stock (no par value) – issued & outstanding
|
||||||||
81.0
and 76.3, respectively
|
659.1 | 532.7 | ||||||
Retained
earnings
|
712.8 | 688.5 | ||||||
Accumulated
other comprehensive income/(loss)
|
(20.3 | ) | 12.5 | |||||
Total
common shareholders' equity
|
1,351.6 | 1,233.7 | ||||||
TOTAL
LIABILITIES & SHAREHOLDERS' EQUITY
|
$ | 4,632.9 | $ | 4,296.4 |
|
The
accompanying notes are an integral part of these consolidated financial
statements.
|
Year
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
OPERATING
REVENUES
|
||||||||||||
Gas
utility
|
$ | 1,432.7 | $ | 1,269.4 | $ | 1,232.5 | ||||||
Electric
utility
|
524.2 | 487.9 | 422.2 | |||||||||
Nonutility
revenues
|
527.8 | 524.6 | 386.9 | |||||||||
Total
operating revenues
|
2,484.7 | 2,281.9 | 2,041.6 | |||||||||
OPERATING
EXPENSES
|
||||||||||||
Cost
of gas sold
|
983.1 | 847.2 | 841.5 | |||||||||
Cost
of fuel & purchased power
|
182.9 | 174.8 | 151.5 | |||||||||
Cost
of nonutility revenues
|
282.2 | 287.7 | 248.7 | |||||||||
Other
operating
|
506.3 | 456.9 | 341.8 | |||||||||
Depreciation
& amortization
|
192.3 | 184.8 | 172.3 | |||||||||
Taxes
other than income taxes
|
74.5 | 70.0 | 65.3 | |||||||||
Total
operating expenses
|
2,221.3 | 2,021.4 | 1,821.1 | |||||||||
OPERATING
INCOME
|
263.4 | 260.5 | 220.5 | |||||||||
OTHER
INCOME
|
||||||||||||
Equity
in earnings of unconsolidated affiliates
|
37.4 | 22.9 | 17.0 | |||||||||
Other
– net
|
2.1 | 36.8 | (2.7 | ) | ||||||||
Total
other income
|
39.5 | 59.7 | 14.3 | |||||||||
Interest
expense
|
97.8 | 101.0 | 95.6 | |||||||||
INCOME
BEFORE INCOME TAXES
|
205.1 | 219.2 | 139.2 | |||||||||
Income
taxes
|
76.1 | 76.0 | 30.3 | |||||||||
Minority
interest
|
- | 0.1 | 0.1 | |||||||||
NET
INCOME
|
$ | 129.0 | $ | 143.1 | $ | 108.8 | ||||||
AVERAGE
COMMON SHARES OUTSTANDING
|
78.3 | 75.9 | 75.7 | |||||||||
DILUTED
COMMON SHARES OUTSTANDING
|
78.9 | 76.6 | 76.2 | |||||||||
EARNINGS
PER SHARE OF COMMON STOCK:
|
||||||||||||
BASIC
|
$ | 1.65 | $ | 1.89 | $ | 1.44 | ||||||
DILUTED
|
$ | 1.63 | $ | 1.87 | $ | 1.43 |
Year
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
Net
income
|
$ | 129.0 | $ | 143.1 | $ | 108.8 | ||||||
Adjustments
to reconcile net income to cash from operating activities:
|
||||||||||||
Depreciation
& amortization
|
192.3 | 184.8 | 172.3 | |||||||||
Deferred
income taxes & investment tax credits
|
79.6 | 27.0 | 1.4 | |||||||||
Equity
in earnings of unconsolidated affiliates
|
(37.4 | ) | (22.9 | ) | (17.0 | ) | ||||||
Provision
for uncollectible accounts
|
16.9 | 16.6 | 15.3 | |||||||||
Expense
portion of pension & postretirement benefit cost
|
7.8 | 9.8 | 10.7 | |||||||||
Other
non-cash charges - net
|
25.4 | 4.8 | 11.4 | |||||||||
Changes
in working capital accounts:
|
||||||||||||
Accounts
receivable & accrued unbilled revenue
|
(83.0 | ) | (29.1 | ) | 108.9 | |||||||
Inventories
|
26.4 | 2.6 | (17.6 | ) | ||||||||
Recoverable/refundable
fuel & natural gas costs
|
(26.2 | ) | (6.3 | ) | 41.3 | |||||||
Prepayments
& other current assets
|
9.8 | (3.7 | ) | (21.2 | ) | |||||||
Accounts
payable, including to affiliated companies
|
65.7 | 4.9 | (71.6 | ) | ||||||||
Accrued
liabilities
|
16.5 | 4.6 | (23.2 | ) | ||||||||
Unconsolidated
affiliate dividends
|
15.5 | 20.8 | 35.8 | |||||||||
Changes
in noncurrent assets
|
19.6 | (21.4 | ) | (25.8 | ) | |||||||
Changes
in noncurrent liabilities
|
(34.7 | ) | (37.5 | ) | (19.3 | ) | ||||||
Net
cash flows from operating activities
|
423.2 | 298.1 | 310.2 | |||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
Proceeds
from:
|
||||||||||||
Common
stock - net of issuance costs
|
124.9 | - | - | |||||||||
Long-term
debt - net of issuance costs
|
171.4 | 16.4 | 92.8 | |||||||||
Stock
option exercises & other stock plans
|
0.8 | 5.2 | - | |||||||||
Requirements
for:
|
||||||||||||
Dividends
on common stock
|
(102.6 | ) | (96.4 | ) | (93.1 | ) | ||||||
Retirement
of long-term debt
|
(104.9 | ) | (23.9 | ) | (124.4 | ) | ||||||
Other
activity
|
- | (0.8 | ) | (0.6 | ) | |||||||
Net
change in short-term borrowings
|
(37.8 | ) | 92.2 | 164.9 | ||||||||
Net
cash flows from financing activities
|
51.8 | (7.3 | ) | 39.6 | ||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Proceeds
from:
|
||||||||||||
Unconsolidated
affiliate distributions
|
0.2 | 12.7 | 2.0 | |||||||||
Other
collections
|
6.4 | 38.0 | 3.4 | |||||||||
Requirements
for:
|
||||||||||||
Capital
expenditures, excluding AFUDC equity
|
(391.0 | ) | (334.5 | ) | (281.4 | ) | ||||||
Unconsolidated
affiliate investments
|
(0.6 | ) | (17.5 | ) | (16.7 | ) | ||||||
Other
investments
|
(17.4 | ) | (1.7 | ) | (44.7 | ) | ||||||
Net
cash flows from investing activities
|
(402.4 | ) | (303.0 | ) | (337.4 | ) | ||||||
Net
change in cash & cash equivalents
|
72.6 | (12.2 | ) | 12.4 | ||||||||
Cash
& cash equivalents at beginning of period
|
20.6 | 32.8 | 20.4 | |||||||||
Cash
& cash equivalents at end of period
|
$ | 93.2 | $ | 20.6 | $ | 32.8 | ||||||
Cash
paid during the year for:
|
||||||||||||
Interest
|
$ | 92.6 | $ | 97.3 | $ | 92.9 | ||||||
Income
taxes
|
(3.5 | ) | 43.7 | 36.3 |
Common
Stock
|
Accumulated
Other
|
|||||||||||||||||||
Retained
|
Comprehensive
|
|||||||||||||||||||
Shares
|
Amount
|
Earnings
|
Income
(Loss)
|
Total
|
||||||||||||||||
Balance
at January 1, 2006
|
76.0 | $ | 528.1 | $ | 628.8 | $ | (13.6 | ) | $ | 1,143.3 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
108.8 | 108.8 | ||||||||||||||||||
Minimum
pension liability adjustments &
|
||||||||||||||||||||
other
- net of $5.4 million in tax
|
7.9 | 7.9 | ||||||||||||||||||
Cash
flow hedge
|
||||||||||||||||||||
unrealized
gains(losses) - net of $1.7 million in tax
|
(2.6 | ) | (2.6 | ) | ||||||||||||||||
reclassifications
to net income- net of $0.7 million in tax
|
(1.0 | ) | (1.0 | ) | ||||||||||||||||
Comprehensive
income of unconsolidated
|
||||||||||||||||||||
affiliates
- net of $4.3 million in tax
|
6.4 | 6.4 | ||||||||||||||||||
Total
comprehensive income
|
119.5 | |||||||||||||||||||
Adoption
of SFAS 158 - net of $5.2 million in tax
|
8.0 | 8.0 | ||||||||||||||||||
Common
stock:
|
||||||||||||||||||||
Dividends
($1.23 per share)
|
(93.1 | ) | (93.1 | ) | ||||||||||||||||
Adoption
of SFAS 123R
|
(4.1 | ) | (4.1 | ) | ||||||||||||||||
Other
|
0.1 | 1.5 | (0.9 | ) | 0.6 | |||||||||||||||
Balance
at December 31, 2006
|
76.1 | 525.5 | 643.6 | 5.1 | 1,174.2 | |||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
143.1 | 143.1 | ||||||||||||||||||
SFAS
158 funded status adjustment - net of $0.5 million in tax
|
0.7 | 0.7 | ||||||||||||||||||
Cash
flow hedges
|
||||||||||||||||||||
unrealized
gains(losses) - net of $0.3 million in tax
|
0.9 | 0.9 | ||||||||||||||||||
reclassifications
to net income- net of $0.3 million in tax
|
(1.0 | ) | (1.0 | ) | ||||||||||||||||
Comprehensive
income of unconsolidated
|
||||||||||||||||||||
affiliates
- net of $4.2 million in tax
|
6.8 | 6.8 | ||||||||||||||||||
Total
comprehensive income
|
150.5 | |||||||||||||||||||
Adoption
of FIN 48
|
(0.1 | ) | (0.1 | ) | ||||||||||||||||
Common
stock:
|
||||||||||||||||||||
Issuance: option
exercises & dividend reinvestment plan
|
0.2 | 5.2 | 5.2 | |||||||||||||||||
Dividends
($1.27 per share)
|
(96.4 | ) | (96.4 | ) | ||||||||||||||||
Other
|
2.0 | (1.7 | ) | 0.3 | ||||||||||||||||
Balance
at December 31, 2007
|
76.3 | 532.7 | 688.5 | 12.5 | 1,233.7 | |||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
129.0 | 129.0 | ||||||||||||||||||
SFAS
158 funded status adjustment - net of $1.7 million in tax
|
(2.4 | ) | (2.4 | ) | ||||||||||||||||
Cash
flow hedges
|
||||||||||||||||||||
reclassifications
to net income- net of $0.2 million in tax
|
(0.2 | ) | (0.2 | ) | ||||||||||||||||
Comprehensive
income of unconsolidated
|
||||||||||||||||||||
affiliates
- net of $20.0 million in tax
|
(30.2 | ) | (30.2 | ) | ||||||||||||||||
Total
comprehensive income
|
96.2 | |||||||||||||||||||
SFAS
158 measurement date adjustment- net of $1.1 million in
tax
|
(1.6 | ) | (1.6 | ) | ||||||||||||||||
Common
stock:
|
||||||||||||||||||||
Issuance: settlement
of equity forward
|
4.6 | 124.9 | 124.9 | |||||||||||||||||
Issuance: option
exercises & dividend reinvestment plan
|
0.1 | 1.2 | 1.2 | |||||||||||||||||
Dividends
($1.31 per share)
|
(102.6 | ) | (102.6 | ) | ||||||||||||||||
Other
|
- | 0.3 | (0.5 | ) | (0.2 | ) | ||||||||||||||
Balance
at December 31, 2008
|
81.0 | $ | 659.1 | $ | 712.8 | $ | (20.3 | ) | $ | 1,351.6 |
1.
|
Organization
and Nature of Operations
|
2.
|
Summary
of Significant Accounting Policies
|
A.
|
Principles
of Consolidation
|
B.
|
Cash
& Cash Equivalents
|
C.
|
Revenues
|
D.
|
Excise
and Utility Receipts Taxes
|
E.
|
Use
of Estimates
|
F.
|
Inventories
|
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Gas
in storage – at average cost
|
$ | 40.4 | $ | 76.8 | ||||
Gas
in storage – at LIFO cost
|
22.2 | 16.7 | ||||||
Total
Gas in storage
|
62.6 | 93.5 | ||||||
Materials
& supplies
|
33.4 | 33.0 | ||||||
Fuel
(coal & oil) for electric generation
|
31.7 | 30.6 | ||||||
Other
|
3.3 | 3.8 | ||||||
Total
inventories
|
$ | 131.0 | $ | 160.9 |
G.
|
Utility
Plant & Depreciation
|
At
December 31,
|
||||||||||||||||
(In
millions)
|
2008
|
2007
|
||||||||||||||
Original
Cost
|
Depreciation
Rates
as a
Percent
of
Original
Cost
|
Original
Cost
|
Depreciation
Rates
as a
Percent
of
Original
Cost
|
|||||||||||||
Gas
utility plant
|
$ | 2,157.6 | 3.5 | % | $ | 2,077.5 | 3.6 | % | ||||||||
Electric
utility plant
|
1,884.3 | 3.3 | % | 1,815.8 | 3.3 | % | ||||||||||
Common
utility plant
|
47.9 | 2.9 | % | 45.5 | 2.8 | % | ||||||||||
Construction
work in progress
|
245.5 | - | 124.1 | - | ||||||||||||
Total
original cost
|
$ | 4,335.3 | $ | 4,062.9 |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
AFUDC
– borrowed funds
|
$ | 2.2 | $ | 3.5 | $ | 2.6 | ||||||
AFUDC
– equity funds
|
0.3 | 0.5 | 1.5 | |||||||||
Total
AFUDC
|
$ | 2.5 | $ | 4.0 | $ | 4.1 |
H.
|
Nonutility
Property
|
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Computer
hardware & software
|
$ | 129.6 | $ | 117.0 | ||||
Land
& buildings
|
93.9 | 76.2 | ||||||
Coal
mine development costs & equipment
|
109.1 | 71.3 | ||||||
Vehicles
& equipment
|
41.7 | 35.0 | ||||||
All
other
|
15.9 | 20.8 | ||||||
Nonutility
property - net
|
$ | 390.2 | $ | 320.3 |
I.
|
Investments
in Unconsolidated Affiliates
|
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
ProLiance
Holdings, LLC
|
$ | 153.1 | $ | 178.6 | ||||
Haddington
Energy Partnerships
|
13.9 | 13.8 | ||||||
Other
partnerships & corporations
|
12.1 | 16.4 | ||||||
Total
investments in unconsolidated affiliates
|
$ | 179.1 | $ | 208.8 |
J.
|
Goodwill
|
K.
|
Intangible
Assets
|
(In
millions)
|
At
December 31,
|
|||||||||||||||
2008
|
2007
|
|||||||||||||||
Amortizing
|
Non-amortizing
|
Amortizing
|
Non-amortizing
|
|||||||||||||
Customer-related
assets
|
$ | 8.9 | $ | - | $ | 8.9 | $ | - | ||||||||
Market-related
assets
|
- | 7.0 | 0.1 | 7.0 | ||||||||||||
Intangible
assets, net
|
$ | 8.9 | $ | 7.0 | $ | 9.0 | $ | 7.0 |
L.
|
Regulation
|
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Future
amounts recoverable from ratepayers related to:
|
||||||||
Benefit
obligations
|
$ | 101.0 | $ | 23.6 | ||||
Income
taxes- transition to SFAS 109
|
(0.7 | ) | (0.9 | ) | ||||
Income
taxes- deferred income taxes
|
12.1 | 14.9 | ||||||
Interest
rate derivatives
|
- | 8.9 | ||||||
Asset
retirement obligations & other
|
8.5 | 10.9 | ||||||
120.9 | 57.4 | |||||||
Amounts
deferred for future recovery related to:
|
||||||||
Cost
recovery riders & other
|
1.7 | 1.9 | ||||||
1.7 | 1.9 | |||||||
Amounts
currently recovered in customer rates related to:
|
||||||||
Demand
side management programs
|
21.5 | 27.6 | ||||||
Unamortized
debt issue costs & hedging proceeds
|
38.4 | 25.0 | ||||||
Indiana
authorized trackers
|
13.8 | 42.3 | ||||||
Ohio
authorized trackers
|
11.6 | 10.4 | ||||||
Premiums
paid to reacquire debt & other
|
8.8 | 10.7 | ||||||
94.1 | 116.0 | |||||||
Total
regulatory assets
|
$ | 216.7 | $ | 175.3 |
M.
|
Asset
Retirement Obligations
|
N.
|
Impairment
Review of Long-Lived Assets
|
O.
|
Comprehensive
Income
|
2006
|
2007
|
2008
|
||||||||||||||||||||||||||
Beginning
|
Changes
|
End
|
Changes
|
End
|
Changes
|
End
|
||||||||||||||||||||||
of
Year
|
During
|
of
Year
|
During
|
of
Year
|
During
|
of
Year
|
||||||||||||||||||||||
(In
millions)
|
Balance
|
Year
|
Balance
|
Year
|
Balance
|
Year
|
Balance
|
|||||||||||||||||||||
Unconsolidated
affiliates
|
$ | (0.5 | ) | $ | 10.7 | $ | 10.2 | 11.0 | $ | 21.2 | $ | (50.2 | ) | $ | (29.0 | ) | ||||||||||||
Pension
& other benefit costs
|
(29.0 | ) | 26.5 | (2.5 | ) | 1.2 | (1.3 | ) | (4.0 | ) | (5.3 | ) | ||||||||||||||||
Cash
flow hedges
|
6.7 | (6.0 | ) | 0.7 | (0.1 | ) | 0.6 | (0.5 | ) | 0.1 | ||||||||||||||||||
Deferred
income taxes
|
9.2 | (12.5 | ) | (3.3 | ) | (4.7 | ) | (8.0 | ) | 21.9 | 13.9 | |||||||||||||||||
Accumulated
other comprehensive income (loss)
|
$ | (13.6 | ) | $ | 18.7 | $ | 5.1 | $ | 7.4 | $ | 12.5 | $ | (32.8 | ) | $ | (20.3 | ) |
P.
|
Other
Significant Policies
|
3.
|
Investments
in ProLiance Holdings, LLC
|
Year
Ended December 31,
|
||||||||||||
(in
millions)
|
2008
|
2007
|
2006
|
|||||||||
Summarized
Statement of Income information:
|
||||||||||||
Revenues
|
$ | 2,883.6 | $ | 2,267.1 | $ | 2,505.5 | ||||||
Operating
income
|
63.7 | 61.5 | 55.0 | |||||||||
ProLiance's
earnings
|
64.7 | 67.2 | 57.9 |
As
of December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Summarized
balance sheet information:
|
||||||||
Current
assets
|
$ | 661.5 | $ | 684.3 | ||||
Noncurrent
assets
|
104.2 | 45.2 | ||||||
Current
liabilities
|
514.0 | 436.9 | ||||||
Noncurrent
liabilities
|
3.6 | 4.3 | ||||||
Equity
|
248.1 | 288.3 |
4.
|
Nonutility
Real Estate and Other Legacy
Holdings
|
December
31, 2008
|
||||||||||||
Value
Included In
|
||||||||||||
(in
millions)
|
Remaining
Carrying Value
|
Other
Nonutility Investments
|
Investments
in Unconsolidated Affiliates
|
|||||||||
Commercial
Real Estate Investments
|
$ | 21.0 | $ | 21.0 | $ | - | ||||||
Leveraged
Leases
|
17.3 | 17.3 | - | |||||||||
Haddington
Energy Partnerships
|
14.3 | 0.4 | 13.9 | |||||||||
Affordable
Housing Projects
|
9.6 | 0.1 | 9.5 | |||||||||
Other
investments
|
9.6 | 7.1 | 2.5 | |||||||||
$ | 71.8 | $ | 45.9 | $ | 25.9 |
5.
|
Synfuel-Related
Activity
|
6.
|
Utilicom
Networks, LLC & Related Entities Disposition in
2006
|
7.
|
Miller
Pipeline Corporation Acquisition in
2006
|
8.
|
Income
Taxes
|
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Noncurrent
deferred tax liabilities (assets):
|
||||||||
Depreciation
& cost recovery timing differences
|
$ | 372.6 | $ | 309.3 | ||||
Leveraged
leases
|
15.1 | 19.3 | ||||||
Regulatory
assets recoverable through future rates
|
27.8 | 25.3 | ||||||
Demand
side management programs
|
- | 7.9 | ||||||
Other
comprehensive income
|
(15.0 | ) | 7.2 | |||||
Alternative
minimum tax carryforward
|
- | (3.4 | ) | |||||
Employee
benefit obligations
|
(36.2 | ) | (34.5 | ) | ||||
Net
operating loss & other carryforwards
|
(2.1 | ) | (4.1 | ) | ||||
Regulatory
liabilities to be settled through future rates
|
(15.7 | ) | (10.4 | ) | ||||
Other
– net
|
6.9 | 1.5 | ||||||
Net
noncurrent deferred tax liability
|
353.4 | 318.1 | ||||||
Current
deferred tax (assets)/liabilities:
|
||||||||
Deferred
fuel costs-net
|
2.6 | (1.2 | ) | |||||
Demand
side management programs
|
8.8 | - | ||||||
Alternative
minimum tax carryforward
|
(11.2 | ) | (29.6 | ) | ||||
Other
– net
|
(8.4 | ) | 0.9 | |||||
Net
current deferred tax (asset)/liability
|
(8.2 | ) | (29.9 | ) | ||||
Net
deferred tax liability
|
$ | 345.2 | $ | 288.2 |
Year
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Statutory
rate:
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
State
and local taxes-net of federal benefit
|
3.9 | 4.3 | 5.7 | |||||||||
Amortization of
investment tax credit
|
(0.6 | ) | (0.8 | ) | (1.4 | ) | ||||||
Depletion
|
(0.4 | ) | (0.7 | ) | (1.6 | ) | ||||||
Other
tax credits
|
(0.9 | ) | (0.2 | ) | (0.5 | ) | ||||||
Synfuel
tax credits
|
- | (3.0 | ) | (9.6 | ) | |||||||
Tax law
change
|
- | 0.2 | (2.5 | ) | ||||||||
Adjustment of
income tax accruals
|
- | - | (2.0 | ) | ||||||||
All
other-net
|
0.1 | (0.1 | ) | (1.3 | ) | |||||||
Effective tax
rate
|
37.1 | % | 34.7 | % | 21.8 | % |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
Current:
|
||||||||||||
Federal
|
$ | (14.8 | ) | $ | 35.9 | $ | 18.2 | |||||
State
|
11.3 | 13.1 | 10.7 | |||||||||
Total
current taxes
|
(3.5 | ) | 49.0 | 28.9 | ||||||||
Deferred:
|
||||||||||||
Federal
|
78.2 | 24.6 | 7.0 | |||||||||
State
|
2.7 | 4.1 | (3.6 | ) | ||||||||
Total
deferred taxes
|
80.9 | 28.7 | 3.4 | |||||||||
Amortization
of investment tax credits
|
(1.3 | ) | (1.7 | ) | (2.0 | ) | ||||||
Total
income tax expense
|
$ | 76.1 | $ | 76.0 | $ | 30.3 |
(in
millions)
|
2008
|
2007
|
||||||
Unrecognized
tax benefits at January 1
|
$ | 6.2 | $ | 11.6 | ||||
Gross
Increases - tax positions in prior periods
|
1.7 | 0.3 | ||||||
Gross
Decreases - tax positions in prior periods
|
(6.0 | ) | (7.4 | ) | ||||
Gross
Increases - current period tax positions
|
0.3 | 1.9 | ||||||
Gross
Decreases - current period tax positions
|
- | (0.2 | ) | |||||
Unrecognized
tax benefits at December 31
|
$ | 2.2 | $ | 6.2 |
9.
|
Retirement
Plans & Other Postretirement
Benefits
|
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
Service
cost
|
$ | 6.1 | $ | 5.6 | $ | 6.0 | $ | 0.5 | $ | 0.5 | $ | 0.6 | ||||||||||||
Interest
cost
|
15.1 | 14.9 | 14.1 | 4.2 | 4.0 | 3.9 | ||||||||||||||||||
Expected
return on plan assets
|
(16.6 | ) | (14.3 | ) | (13.5 | ) | (0.5 | ) | (0.5 | ) | (0.6 | ) | ||||||||||||
Amortization
of prior service cost
|
1.7 | 1.7 | 1.8 | (0.8 | ) | (0.8 | ) | (0.8 | ) | |||||||||||||||
Amortization
of actuarial loss (gain)
|
0.1 | 1.5 | 2.4 | - | (0.1 | ) | - | |||||||||||||||||
Amortization
of transitional obligation
|
- | - | - | 1.1 | 1.1 | 1.1 | ||||||||||||||||||
Net
periodic benefit cost
|
$ | 6.4 | $ | 9.4 | $ | 10.8 | $ | 4.5 | $ | 4.2 | $ | 4.2 |
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
Discount
rate
|
6.25 | % | 5.85 | % | 5.50 | % | 6.25 | % | 5.85 | % | 5.50 | % | ||||||||||||
Rate
of compensation increase
|
3.75 | % | 3.75 | % | 3.25 | % | N/A | N/A | N/A | |||||||||||||||
Expected
return on plan assets
|
8.25 | % | 8.25 | % | 8.25 | % | 8.25 | % | 8.25 | % | 8.25 | % | ||||||||||||
Expected
increase in Consumer Price Index
|
N/A | N/A | N/A | 3.50 | % | 3.50 | % | 3.50 | % |
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
(In
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Benefit
obligation, beginning of period
|
$ | 249.6 | $ | 255.4 | $ | 70.2 | $ | 69.5 | ||||||||
Service
cost – benefits earned during the period
|
7.7 | 5.6 | 0.7 | 0.5 | ||||||||||||
Interest
cost on projected benefit obligation
|
18.8 | 14.9 | 5.2 | 3.9 | ||||||||||||
Plan
participants' contributions
|
- | - | 2.8 | 1.3 | ||||||||||||
Plan
amendments
|
0.4 | - | - | - | ||||||||||||
Actuarial
loss (gain)
|
0.3 | (13.9 | ) | 2.5 | 1.5 | |||||||||||
Medicare
subsidy receipts
|
- | - | 0.7 | 0.2 | ||||||||||||
Benefits
paid
|
(16.2 | ) | (12.4 | ) | (9.8 | ) | (6.7 | ) | ||||||||
Benefit
obligation, end of period
|
$ | 260.6 | $ | 249.6 | $ | 72.3 | $ | 70.2 |
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Discount
rate
|
6.25 | % | 6.25 | % | 6.25 | % | 6.25 | % | ||||||||
Rate
of compensation increase
|
3.75 | % | 3.75 | % | N/A | N/A | ||||||||||
Expected
increase in Consumer Price Index
|
N/A | N/A | 3.50 | % | 3.50 | % |
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
(In
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Plan
assets at fair value, beginning of period
|
$ | 211.8 | $ | 185.0 | $ | 6.8 | $ | 6.8 | ||||||||
Actual
return on plan assets
|
(58.0 | ) | 22.3 | (1.4 | ) | 0.9 | ||||||||||
Employer
contributions
|
13.3 | 16.9 | 5.9 | 4.5 | ||||||||||||
Plan
participants' contributions
|
- | - | 2.8 | 1.3 | ||||||||||||
Benefits
paid
|
(16.2 | ) | (12.4 | ) | (9.8 | ) | (6.7 | ) | ||||||||
Fair
value of plan assets, end of period
|
$ | 150.9 | $ | 211.8 | $ | 4.3 | $ | 6.8 |
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Equity
securities
|
58 | % | 64 | % | 72 | % | 74 | % | ||||||||
Debt
securities
|
37 | % | 31 | % | 25 | % | 26 | % | ||||||||
Real
estate and other
|
5 | % | 5 | % | 3 | % | - | |||||||||
Total
|
100 | % | 100 | % | 100 | % | 100 | % |
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
(In
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Benefit
obligation, end of period
|
$ | 260.6 | $ | 249.6 | $ | 72.3 | $ | 70.2 | ||||||||
Fair
value of plan assets, end of period
|
(150.9 | ) | (211.8 | ) | (4.3 | ) | (6.8 | ) | ||||||||
Post
measurement date adjustments
|
- | (2.4 | ) | - | (1.1 | ) | ||||||||||
Funded
status, end of period:
|
$ | 109.7 | $ | 35.4 | $ | 68.0 | $ | 62.3 | ||||||||
Accrued
liabilities
|
$ | 0.7 | $ | 0.7 | $ | 4.3 | $ | 3.9 | ||||||||
Other
liabilities
|
$ | 109.0 | $ | 34.7 | $ | 63.7 | $ | 58.4 |
(In
millions)
|
Pensions
|
Other
Benefits
|
||||||||||||||||||
Prior
Service Cost
|
Net
Gain or Loss
|
Prior
Service Cost
|
Net
Gain or Loss
|
Transition
Obligation
|
||||||||||||||||
Balance
at adoption of SFAS 158
|
$ | 12.9 | $ | 35.3 | $ | (5.5 | ) | $ | (2.2 | ) | $ | 8.7 | ||||||||
Amounts
arising during the period
|
- | (21.9 | ) | - | 1.2 | - | ||||||||||||||
Reclassification
to benefit costs
|
(1.7 | ) | (1.5 | ) | 0.8 | (0.1 | ) | (1.1 | ) | |||||||||||
Balance
December 31, 2007
|
11.2 | 11.9 | (4.7 | ) | (1.1 | ) | 7.6 | |||||||||||||
Amounts
arising during the period
|
0.4 | 79.1 | - | 4.6 | - | |||||||||||||||
Reclassification
to benefit costs
|
(2.1 | ) | (0.1 | ) | 1.0 | - | (1.4 | ) | ||||||||||||
Balance
December 31, 2008
|
$ | 9.5 | $ | 90.9 | $ | (3.7 | ) | $ | 3.5 | $ | 6.2 |
(In
millions)
|
2008
|
2007
|
||||||||||||||
Pensions
|
Other
Benefits
|
Pensions
|
Other
Benefits
|
|||||||||||||
Prior
service cost
|
$ | 9.5 | $ | (3.7 | ) | $ | 11.2 | $ | (4.7 | ) | ||||||
Unamortized
actuarial gain/(loss)
|
90.9 | 3.5 | 11.9 | (1.1 | ) | |||||||||||
Transition
obligation
|
- | 6.2 | - | 7.6 | ||||||||||||
100.4 | 6.0 | 23.1 | 1.8 | |||||||||||||
Less:
Regulatory asset
deferral
|
(95.4 | ) | (5.7 | ) | (21.9 | ) | (1.7 | ) | ||||||||
AOCI before
taxes
|
$ | 5.0 | $ | 0.3 | $ | 1.2 | $ | 0.1 |
10.
|
Borrowing
Arrangements
|
At
December 31,
|
|||||
(In
millions)
|
2008
|
2007
|
|||
Utility
Holdings
|
|||||
Fixed
Rate Senior Unsecured Notes
|
|||||
2011,
6.625%
|
$ 250.0
|
$ 250.0
|
|||
2013,
5.25%
|
100.0
|
100.0
|
|||
2015,
5.45%
|
75.0
|
75.0
|
|||
2018,
5.75%
|
100.0
|
100.0
|
|||
2035,
6.10%
|
75.0
|
75.0
|
|||
2036,
5.95%
|
99.1
|
100.0
|
|||
2039,
6.25%
|
124.3
|
-
|
|||
Total
Utility Holdings
|
823.4
|
700.0
|
|||
SIGECO
|
|||||
First
Mortgage Bonds
|
|||||
2016,
1986 Series, 8.875%
|
13.0
|
13.0
|
|||
2020,
1998 Pollution Control Series B, 4.50%, tax exempt
|
4.6
|
4.6
|
|||
2024,
2000 Environmental Improvement Series A, 4.65%, tax exempt
|
22.5
|
22.5
|
|||
2029,
1999 Senior Notes, 6.72%
|
80.0
|
80.0
|
|||
2030,
1998 Pollution Control Series B, 5.00%, tax exempt
|
22.0
|
22.0
|
|||
2015,
1985 Pollution Control Series A, current adjustable rate 0.9%, tax
exempt,
|
|||||
2008 weighted average: 2.78%
|
9.8
|
9.8
|
|||
2023,
1993 Environmental Improvement Series B, 5.15%, tax
exempt
|
22.6
|
22.6
|
|||
2025,
1998 Pollution Control Series A, current adjustable rate 1.2%, tax
exempt,
|
|||||
2008 weighted average: 2.94%
|
31.5
|
31.5
|
|||
2030,
1998 Pollution Control Series C, 5.35%, tax exempt
|
22.2 | 22.2 | |||
2041,
2007 Pollution Control Series, 5.45%, tax exempt
|
17.0
|
17.0 | |||
Total
SIGECO
|
245.2
|
245.2
|
|||
Indiana
Gas
|
|||||
Senior
Unsecured Notes
|
|||||
2013,
Series E, 6.69%
|
5.0
|
5.0
|
|||
2015,
Series E, 7.15%
|
5.0
|
5.0
|
|||
2015,
Series E, 6.69%
|
5.0
|
5.0
|
|||
2015,
Series E, 6.69%
|
10.0
|
10.0
|
|||
2025,
Series E, 6.53%
|
10.0
|
10.0
|
|||
2027,
Series E, 6.42%
|
5.0
|
5.0
|
|||
2027,
Series E, 6.68%
|
1.0
|
1.0
|
|||
2027,
Series F, 6.34%
|
20.0
|
20.0
|
|||
2028,
Series F, 6.36%
|
10.0
|
10.0
|
|||
2028,
Series F, 6.55%
|
20.0
|
20.0
|
|||
2029,
Series G, 7.08%
|
30.0
|
30.0
|
|||
Total
Indiana Gas
|
121.0
|
121.0
|
At
December 31,
|
|||||
(In
millions)
|
2008
|
2007
|
|||
Vectren
Capital Corp.
|
|||||
Fixed
Rate Senior Unsecured Notes
|
|||||
2010,
4.99%
|
25.0
|
25.0
|
|||
2010,
7.98%
|
22.5
|
22.5
|
|||
2012,
5.13%
|
25.0
|
25.0
|
|||
2012,
7.43%
|
35.0
|
35.0
|
|||
2015,
5.31%
|
75.0
|
75.0
|
|||
Total
Vectren Capital Corp.
|
182.5
|
182.5
|
|||
Other
Long-Term Notes Payable
|
0.7
|
0.3
|
|||
Total
long-term debt outstanding
|
1,372.8
|
1,249.0
|
|||
Current
maturities of long-term debt
|
(0.4)
|
(0.3)
|
|||
Debt
subject to tender
|
(80.0)
|
-
|
|||
Unamortized
debt premium & discount - net
|
(3.2)
|
(3.3)
|
|||
Treasury
debt
|
(41.3)
|
-
|
|||
Total
long-term debt-net
|
$ 1,247.9
|
$
1,245.4
|
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
Weighted
average commercial paper and bank loans
|
||||||||||||
outstanding
during the year
|
$ | 388.0 | $ | 391.3 | $ | 256.1 | ||||||
Weighted
average interest rates during the year
|
||||||||||||
Commercial
paper
|
3.76 | % | 5.54 | % | 5.16 | % | ||||||
Bank
loans
|
3.22 | % | 5.61 | % | 5.51 | % | ||||||
At
December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
||||||||||
Commercial
paper
|
$ | 91.5 | $ | 385.9 | ||||||||
Bank
loans
|
428.0 | 171.1 | ||||||||||
Total
short-term borrowings
|
$ | 519.5 | $ | 557.0 |
11.
|
Common
Shareholders’ Equity
|
12.
|
Earnings
Per Share
|
Year
Ended December 31,
|
||||||||||||
(In
millions, except per share data)
|
2008
|
2007
|
2006
|
|||||||||
Numerator:
|
||||||||||||
Numerator
for basic and diluted EPS - Net income
|
$ | 129.0 | $ | 143.1 | $ | 108.8 | ||||||
Denominator:
|
||||||||||||
Denominator
for basic EPS - Weighted average
|
||||||||||||
common
shares outstanding
|
78.3 | 75.9 | 75.7 | |||||||||
Equity
forward dilution effect
|
0.1 | 0.1 | - | |||||||||
Conversion
of stock options and lifting of
|
||||||||||||
restrictions
on issued restricted stock
|
0.5 | 0.6 | 0.5 | |||||||||
Denominator
for diluted EPS - Adjusted weighted
|
||||||||||||
average
shares outstanding and assumed
|
||||||||||||
conversions
outstanding
|
78.9 | 76.6 | 76.2 | |||||||||
Basic
earnings per share
|
$ | 1.65 | $ | 1.89 | $ | 1.44 | ||||||
Diluted
earnings per share
|
$ | 1.63 | $ | 1.87 | $ | 1.43 |
13.
|
Share-Based
Compensation
|
Year
ended December 31,
|
||||||||||||
(in
millions)
|
2008
|
2007
|
2006
|
|||||||||
Total
cost of share-based compensation
|
$ | 3.7 | $ | 2.5 | $ | 3.2 | ||||||
Less
capitalized cost
|
0.9 | 0.5 | 0.9 | |||||||||
Total
in other operating expense
|
2.8 | 2.0 | 2.3 | |||||||||
Less
income tax benefit in earnings
|
1.1 | 0.8 | 0.6 | |||||||||
After
tax effect of share-based compensation
|
$ | 1.7 | $ | 1.2 | $ | 1.7 |
Equity
Awards
|
||||||||||||||||
Wtd.
Avg.
|
||||||||||||||||
Grant
Date
|
Liability
Awards
|
|||||||||||||||
Shares
|
Fair
value
|
Shares/Units
|
Fair
value
|
|||||||||||||
Restricted
at January 1, 2008
|
21,870 | $ | 28.11 | 351,888 | ||||||||||||
Granted
|
16,695 | $ | 28.66 | 190,832 | ||||||||||||
Vested
|
- | $ | - | (14,688 | ) | |||||||||||
Forfeited
|
(2,330 | ) | $ | 28.52 | (3,639 | ) | ||||||||||
Restricted
at December 31, 2008
|
36,235 | $ | 28.24 | 524,393 | $ | 25.01 |
Weighted
average
|
Aggregate
|
|||||||||||||||
Remaining
|
Intrinsic
|
|||||||||||||||
Shares
|
Exercise
|
Contractual
|
Value
|
|||||||||||||
Price
|
Term
(years)
|
(In
millions)
|
||||||||||||||
Outstanding
at January 1, 2008
|
1,432,774 | $ | 23.86 | |||||||||||||
Granted
|
- | $ | - | |||||||||||||
Exercised
|
(97,560 | ) | $ | 22.52 | ||||||||||||
Forfeited
or expired
|
- | $ | - | |||||||||||||
Outstanding
at December 31, 2008
|
1,335,214 | $ | 23.95 | 4.1 | $ | 1.9 | ||||||||||
Exercisable
at December 31, 2008
|
1,335,214 | $ | 23.95 | 4.1 | $ | 1.9 |
14.
|
Commitments
& Contingencies
|
15.
|
Environmental
Matters
|
16.
|
Rate
& Regulatory Matters
|
17.
|
Derivatives
& Other Financial Instruments
|
At
December 31,
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
(In
millions)
|
Carrying
Amount
|
Est.
Fair Value
|
Carrying
Amount
|
Est.
Fair Value
|
||||||||||||
Long-term
debt
|
$ | 1,372.8 | $ | 1,251.0 | $ | 1,249.0 | $ | 1,236.6 | ||||||||
Short-term
borrowings & notes payable
|
519.5 | 519.5 | 557.0 | 557.0 |
18.
|
Segment
Reporting
|
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
Revenues
|
||||||||||||
Utility
Group
|
||||||||||||
Gas
Utility Services
|
$ | 1,432.7 | $ | 1,269.4 | $ | 1,232.5 | ||||||
Electric
Utility Services
|
524.2 | 487.9 | 422.2 | |||||||||
Other
Operations
|
36.8 | 40.4 | 36.6 | |||||||||
Eliminations
|
(35.0 | ) | (38.7 | ) | (34.8 | ) | ||||||
Total
Utility Group
|
1,958.7 | 1,759.0 | 1,656.5 | |||||||||
Nonutility
Group
|
664.7 | 643.4 | 503.2 | |||||||||
Eliminations
|
(138.7 | ) | (120.5 | ) | (118.1 | ) | ||||||
Consolidated
Revenues
|
$ | 2,484.7 | $ | 2,281.9 | $ | 2,041.6 | ||||||
Profitability
Measures - Net Income
|
||||||||||||
Gas
Utility Services
|
$ | 53.3 | $ | 41.7 | $ | 41.5 | ||||||
Electric
Utility Services
|
50.7 | 52.6 | 41.6 | |||||||||
Other
Operations
|
7.1 | 12.2 | 8.3 | |||||||||
Utility
Group Net Income
|
111.1 | 106.5 | 91.4 | |||||||||
Nonutility
Group Net Income
|
18.9 | 37.0 | 18.1 | |||||||||
Corporate
& Other Net Loss
|
(1.0 | ) | (0.4 | ) | (0.7 | ) | ||||||
Consolidated
Net Income
|
$ | 129.0 | $ | 143.1 | $ | 108.8 | ||||||
Amounts
Included in Profitability Measures
|
||||||||||||
Depreciation
& Amortization
|
||||||||||||
Utility
Group
|
||||||||||||
Gas
Utility Services
|
$ | 74.1 | $ | 70.6 | $ | 67.6 | ||||||
Electric
Utility Services
|
68.5 | 66.0 | 61.8 | |||||||||
Other
Operations
|
22.9 | 21.8 | 21.9 | |||||||||
Total
Utility Group
|
165.5 | 158.4 | 151.3 | |||||||||
Nonutility
Group
|
26.8 | 26.4 | 21.0 | |||||||||
Consolidated
Depreciation & Amortization
|
$ | 192.3 | $ | 184.8 | $ | 172.3 |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
Interest
Expense
|
||||||||||||
Utility
Group
|
||||||||||||
Gas
Utility Services
|
$ | 42.0 | $ | 39.8 | $ | 40.7 | ||||||
Electric
Utility Services
|
32.0 | 29.6 | 28.6 | |||||||||
Other
Operations
|
5.9 | 11.2 | 8.2 | |||||||||
Total
Utility Group
|
79.9 | 80.6 | 77.5 | |||||||||
Nonutility
Group
|
17.3 | 21.9 | 20.0 | |||||||||
Corporate
& Other
|
0.6 | (1.5 | ) | (1.9 | ) | |||||||
Consolidated
Interest Expense
|
$ | 97.8 | $ | 101.0 | $ | 95.6 | ||||||
Income
Taxes
|
||||||||||||
Utility
Group
|
||||||||||||
Gas
Utility Services
|
$ | 35.5 | $ | 33.2 | $ | 22.6 | ||||||
Electric
Utility Services
|
32.0 | 38.0 | 25.3 | |||||||||
Other
Operations
|
0.1 | (4.5 | ) | (0.2 | ) | |||||||
Total
Utility Group
|
67.6 | 66.7 | 47.7 | |||||||||
Nonutility
Group
|
9.5 | 10.5 | (17.6 | ) | ||||||||
Corporate
& Other
|
(1.0 | ) | (1.2 | ) | 0.2 | |||||||
Consolidated
Income Taxes
|
$ | 76.1 | $ | 76.0 | $ | 30.3 | ||||||
Capital
Expenditures
|
||||||||||||
Utility
Group
|
||||||||||||
Gas
Utility Services
|
$ | 110.4 | $ | 128.9 | $ | 76.8 | ||||||
Electric
Utility Services
|
172.0 | 134.7 | 156.8 | |||||||||
Other
Operations
|
29.6 | 36.4 | 24.8 | |||||||||
Non-cash
costs & changes in accruals
|
(8.3 | ) | (0.2 | ) | (11.8 | ) | ||||||
Total
Utility Group
|
303.7 | 299.8 | 246.6 | |||||||||
Nonutility
Group
|
87.3 | 34.7 | 34.8 | |||||||||
Consolidated
Capital Expenditures
|
$ | 391.0 | $ | 334.5 | $ | 281.4 |
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Assets
|
||||||||
Utility
Group
|
||||||||
Gas
Utility Services
|
$ | 2,204.7 | $ | 2,287.4 | ||||
Electric
Utility Services
|
1,462.1 | 1,369.2 | ||||||
Other
Operations, net of eliminations
|
171.3 | (12.9 | ) | |||||
Total
Utility Group
|
3,838.1 | 3,643.7 | ||||||
Nonutility
Group
|
780.1 | 704.1 | ||||||
Corporate
& Other
|
737.5 | 450.3 | ||||||
Eliminations
|
(722.8 | ) | (501.7 | ) | ||||
Consolidated
Assets
|
$ | 4,632.9 | $ | 4,296.4 |
19.
|
Additional
Balance Sheet & Statement of Income
Information
|
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Prepaid
gas delivery service
|
$ | 75.0 | $ | 65.2 | ||||
Deferred
income taxes
|
8.2 | 29.9 | ||||||
Synfuels
related derivatives
|
- | 22.8 | ||||||
Prepaid
taxes
|
14.1 | 9.8 | ||||||
Other
prepayments & current assets
|
27.3 | 32.8 | ||||||
Total
prepayments & other current assets
|
$ | 124.6 | $ | 160.5 |
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Refunds
to customers & customer deposits
|
$ | 45.5 | $ | 43.7 | ||||
Accrued
taxes
|
46.3 | 34.2 | ||||||
Accrued
interest
|
19.2 | 17.4 | ||||||
Asset
retirement obligation
|
7.2 | 9.5 | ||||||
Accrued
salaries & other
|
56.8 | 67.0 | ||||||
Total
accrued liabilities
|
$ | 175.0 | $ | 171.8 |
At
December 31,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Cash
surrender value of life insurance policies
|
$ | 19.8 | $ | 18.2 | ||||
Municipal
bond
|
4.5 | 4.7 | ||||||
Restricted
cash
|
- | 2.2 | ||||||
Other
investments
|
1.4 | 1.2 | ||||||
Total
other investments
|
$ | 25.7 | $ | 26.3 |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
ProLiance
Holdings , LLC
|
$ | 39.5 | $ | 41.0 | $ | 35.3 | ||||||
Haddinton
Energy Partners, LP
|
(0.2 | ) | (0.2 | ) | 0.3 | |||||||
Pace
Carbon Synfuels, LP
|
- | (20.0 | ) | (17.8 | ) | |||||||
Other
|
(1.9 | ) | 2.1 | (0.8 | ) | |||||||
Total
equity in earnings of unconsolidated affiliates
|
$ | 37.4 | $ | 22.9 | $ | 17.0 |
Year
Ended December 31,
|
||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
|||||||||
AFUDC
& capitalized interest
|
$ | 6.2 | $ | 6.3 | $ | 5.3 | ||||||
Interest
income
|
2.3 | 2.9 | 4.0 | |||||||||
Synfuel-related
activity
|
- | 23.4 | (11.4 | ) | ||||||||
Commerical
real estate impairment charge
|
(5.2 | ) | - | - | ||||||||
Broadband
charges
|
- | 0.1 | (1.9 | ) | ||||||||
Cash
surrender value of life insurance policies
|
(2.8 | ) | 0.6 | 0.8 | ||||||||
All
other income
|
1.6 | 3.5 | 0.5 | |||||||||
Total
other – net
|
$ | 2.1 | $ | 36.8 | $ | (2.7 | ) |
20.
|
Impact
of Recently Issued Accounting
Guidance
|
21.
|
Quarterly
Financial Data (Unaudited)
|
(In
millions, except per share amounts)
|
Q1
|
Q2
|
Q3
|
Q4
|
||||||||||||
2008
|
||||||||||||||||
Operating
revenues
|
$ | 902.1 | $ | 463.9 | $ | 411.4 | $ | 707.3 | ||||||||
Operating
income
|
108.8 | 33.0 | 43.2 | 78.4 | ||||||||||||
Net
income
|
64.0 | 4.7 | 23.2 | 37.1 | ||||||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ | 0.84 | $ | 0.06 | $ | 0.29 | $ | 0.46 | ||||||||
Diluted
|
0.84 | 0.06 | 0.29 | 0.46 | ||||||||||||
2007
|
||||||||||||||||
Operating
revenues
|
$ | 834.0 | $ | 421.7 | $ | 381.4 | $ | 644.8 | ||||||||
Operating
income
|
95.6 | 39.7 | 45.1 | 80.1 | ||||||||||||
Net
income
|
70.1 | 16.0 | 17.1 | 39.9 | ||||||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ | 0.92 | $ | 0.21 | $ | 0.23 | $ | 0.53 | ||||||||
Diluted
|
0.92 | 0.21 | 0.22 | 0.52 |
1)
|
recorded,
processed, summarized and reported within the time periods specified in
the SEC’s rules and forms, and
|
|
2)
|
accumulated
and communicated to management, including the Chief Executive Officer and
Chief Financial Officer, as appropriate to allow timely decisions
regarding required disclosure.
|
A
|
B
|
C
|
||||||||
Plan
category
|
Number
of securities
to
be issued upon
exercise
of
outstanding
options,
warrants
and rights
|
Weighted
average
exercise
price of
outstanding
options,
warrants
and rights
|
Number
of securities
remaining
available for future
issuance
under equity
compensation
plans
(excluding
securities
reflected
in column (a)
|
|||||||
Equity
compensation plans approved by
|
||||||||||
security
holders
|
1,335,214
|
(1)
|
$ 23.95
|
(1)
|
2,564,107
|
(2)
|
||||
Equity
compensation plans not approved
|
||||||||||
by
security holders
|
-
|
-
|
-
|
|||||||
Total
|
1,335,214
|
$ 23.95
|
2,564,107
|
(1)
|
Includes
the following Vectren Corporation Plans: Vectren Corporation
At-Risk Compensation Plan and 1994 SIGCORP Stock Option
Plan.
|
(2)
|
Future
issuances of shares awards can only be made under the Vectren Corporation
At-Risk Plan. Shares available for issuance under the At-Risk
Plan have been reduced by the issuance of 234,450 restricted units
approved by the board of directors’ Compensation Committee on February 11,
2009. In addition, on February 11, 2009, participants forfeited
56,905 shares related to awards measured during the three year performance
period ending December 31, 2008, and shares available for future
issue have been increased by that
amount.
|
Column
A
|
Column
B
|
Column
C
|
Column
D
|
Column
E
|
|||||
Additions
|
|||||||||
Balance
at
|
Charged
|
Charged
|
Deductions
|
Balance
at
|
|||||
Beginning
|
to
|
to
Other
|
from
|
End
of
|
|||||
Description
|
of
Year
|
Expenses
|
Accounts
|
Reserves,
Net
|
Year
|
||||
(In
millions)
|
|||||||||
VALUATION
AND QUALIFYING
ACCOUNTS:
|
|||||||||
Year
2008 – Accumulated provision for
|
|||||||||
uncollectible
accounts
|
$ 3.7
|
$ 16.9
|
$ 0.3
|
$ 15.3
|
$ 5.6
|
||||
Year
2007 – Accumulated provision for
|
|||||||||
uncollectible
accounts
|
$ 3.3
|
$ 16.6
|
$ -
|
$ 16.2
|
$ 3.7
|
||||
Year
2006 – Accumulated provision for
|
|||||||||
uncollectible
accounts
|
$ 2.8
|
$ 15.3
|
$ -
|
$ 14.8
|
$ 3.3
|
||||
Year
2008 – Reserve for impaired
|
|||||||||
notes
receivable
|
$ 1.7
|
$ 4.6
|
$ -
|
$ -
|
$ 6.3
|
||||
Year
2007 – Reserve for impaired
|
|||||||||
notes
receivable
|
$ 1.6
|
$ 0.3
|
$ -
|
$ 0.2
|
$ 1.7
|
||||
Year
2006 – Reserve for impaired
|
|||||||||
notes
receivable
|
$ 3.4
|
$ 0.4
|
$ -
|
$ 2.2
|
$ 1.6
|
||||
OTHER
RESERVES:
|
|||||||||
Year
2008 – Restructuring costs
|
$ 0.6
|
$ -
|
$ -
|
$ -
|
$ 0.6
|
||||
Year
2007 – Restructuring costs
|
$ 1.7
|
$ -
|
$ -
|
$ 1.1
|
$ 0.6
|
||||
Year
2006 – Restructuring costs
|
$ 2.4
|
$ -
|
$ -
|
$ 0.7
|
$ 1.7
|
||||
Exhibit
Number
|
Document
|
31.1
|
Chief
Executive Officer Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
31.2
|
Chief
Financial Officer Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
32
|
Certification
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
Exhibit
Number
|
Document
|
21.1
|
List
of Company’s Significant Subsidiaries
|
23.1
|
Consent
of Independent Registered Public Accounting Firm
|
23.2
|
Consent
of Independent Auditors
|
99.1
|
ProLiance
Holdings, LLC Consolidated Financial Statements
|
3.1
|
Amended
and Restated Articles of Incorporation of Vectren Corporation effective
March 31, 2000. (Filed and designated in Current Report on Form
8-K filed April 14, 2000, File No. 1-15467, as Exhibit
4.1.)
|
3.2
|
Code
of By-Laws of Vectren Corporation as Most Recently Amended and Restated as
of February 27, 2008. (Filed and designated in Current Report
on Form 8-K filed February 27, 2008, File No. 1-15467, as Exhibit
3.1.)
|
3.3
|
Shareholders
Rights Agreement dated as of October 21, 1999 between Vectren Corporation
and Equiserve Trust Company, N.A., as Rights Agent. (Filed and
designated in Form S-4 (No. 333-90763), filed November 12. 1999, File No.
1-15467, as Exhibit 4.)
|
4.1
|
Mortgage
and Deed of Trust dated as of April 1, 1932 between Southern Indiana Gas
and Electric Company and Bankers Trust Company, as Trustee, and
Supplemental Indentures thereto dated August 31, 1936, October 1, 1937,
March 22, 1939, July 1, 1948, June 1, 1949, October 1, 1949, January 1,
1951, April 1, 1954, March 1, 1957, October 1, 1965, September 1, 1966,
August 1, 1968, May 1, 1970, August 1, 1971, April 1, 1972, October 1,
1973, April 1, 1975, January 15, 1977, April 1, 1978, June 4, 1981,
January 20, 1983, November 1, 1983, March 1, 1984, June 1, 1984, November
1, 1984, July 1, 1985, November 1, 1985, June 1, 1986. (Filed
and designated in Registration No. 2-2536 as Exhibits B-1 and B-2; in
Post-effective Amendment No. 1 to Registration No. 2-62032 as Exhibit
(b)(4)(ii), in Registration No. 2-88923 as Exhibit 4(b)(2), in Form 8-K,
File No. 1-3553, dated June 1, 1984 as Exhibit (4), File No. 1-3553, dated
March 24, 1986 as Exhibit 4-A, in Form 8-K, File No. 1-3553, dated June 3,
1986 as Exhibit (4).) July 1, 1985 and November 1, 1985 (Filed
and designated in Form 10-K, for the fiscal year 1985, File
No. 1-3553, as Exhibit 4-A.) November 15, 1986 and January
15, 1987. (Filed and designated in Form 10-K, for the fiscal
year 1986, File No. 1-3553, as Exhibit 4-A.) December 15,
1987. (Filed and designated in Form 10-K, for the fiscal year
1987, File No. 1-3553, as Exhibit 4-A.) December 13,
1990. (Filed and designated in Form 10-K, for the fiscal year
1990, File No. 1-3553, as Exhibit 4-A.) April 1,
1993. (Filed and designated in Form 8-K, dated April 13, 1993,
File No. 1-3553, as Exhibit 4.) June 1, 1993 (Filed and
designated in Form 8-K, dated June 14, 1993, File No. 1-3553, as Exhibit
4.) May 1, 1993. (Filed and designated in Form 10-K,
for the fiscal year 1993, File No. 1-3553, as Exhibit
4(a).) July 1, 1999. (Filed and designated in Form
10-Q, dated August 16, 1999, File No. 1-3553, as Exhibit
4(a).) March 1, 2000. (Filed and designated in Form
10-K for the year ended December 31, 2001, File No. 1-15467, as Exhibit
4.1.) August 1, 2004. (Filed and designated in Form 10-K for
the year ended December 31, 2004, File No. 1-15467, as Exhibit
4.1.) October 1, 2004. (Filed and designated in Form
10-K for the year ended December 31, 2004, File No. 1-15467, as Exhibit
4.2.) April 1, 2005 (Filed and designated in Form 10-K for the
year ended December 31, 2007, File No 1-15467, as Exhibit
4.1) March 1, 2006 (Filed and designated in Form 10-K for the
year ended December 31, 2007, File No 1-15467, as Exhibit
4.2) December 1, 2007 (Filed and designated in Form 10-K for
the year ended December 31, 2007, File No 1-15467, as Exhibit
4.3)
|
4.2
|
Indenture
dated February 1, 1991, between Indiana Gas and U.S. Bank Trust National
Association (formerly know as First Trust National Association, which was
formerly know as Bank of America Illinois, which was formerly know as
Continental Bank, National Association. Inc.'s. (Filed and
designated in Current Report on Form 8-K filed February 15, 1991, File No.
1-6494.); First Supplemental Indenture thereto dated as of February 15,
1991. (Filed and designated in Current Report on Form 8-K filed
February 15, 1991, File No. 1-6494, as Exhibit 4(b).); Second Supplemental
Indenture thereto dated as of September 15, 1991, (Filed and designated in
Current Report on Form 8-K filed September 25, 1991, File No. 1-6494, as
Exhibit 4(b).); Third supplemental Indenture thereto dated as of September
15, 1991 (Filed and designated in Current Report on Form 8-K filed
September 25, 1991, File No. 1-6494, as Exhibit 4(c).); Fourth
Supplemental Indenture thereto dated as of December 2, 1992, (Filed and
designated in Current Report on Form 8-K filed December 8, 1992, File No.
1-6494, as Exhibit 4(b).); Fifth Supplemental Indenture thereto dated as
of December 28, 2000, (Filed and designated in Current Report on Form 8-K
filed December 27, 2000, File No. 1-6494, as Exhibit
4.)
|
4.3
|
Indenture
dated October 19, 2001, among Vectren Utility Holdings, Inc., Indiana Gas
Company, Inc., Southern Indiana Gas and Electric Company, Vectren Energy
Delivery of Ohio, Inc., and U.S. Bank Trust National Association.
(Filed and designated in Form 8-K, dated October 19, 2001, File No.
1-16739, as Exhibit 4.1); First Supplemental Indenture, dated October 19,
2001, between Vectren Utility Holdings, Inc., Indiana Gas Company, Inc.,
Southern Indiana Gas and Electric Company, Vectren Energy Delivery of
Ohio, Inc., and U.S. Bank Trust National Association. (Filed and
designated in Form 8-K, dated October 19, 2001, File No. 1-16739, as
Exhibit 4.2); Second Supplemental Indenture, among Vectren Utility
Holdings, Inc., Indiana Gas Company, Inc., Southern Indiana Gas and
Electric Company, Vectren Energy Delivery of Ohio, Inc., and U.S. Bank
Trust National Association. (Filed and designated in Form 8-K, dated
November 29, 2001, File No. 1-16739, as Exhibit 4.1); Third Supplemental
Indenture, among Vectren Utility Holdings, Inc., Indiana Gas Company,
Inc., Southern Indiana Gas and Electric Company, Vectren Energy Delivery
of Ohio, Inc., and U.S. Bank Trust National Association. (Filed and
designated in Form 8-K, dated July 24, 2003, File No. 1-16739, as Exhibit
4.1); Fourth Supplemental Indenture, among Vectren Utility Holdings, Inc.,
Indiana Gas Company, Inc., Southern Indiana Gas and Electric Company,
Vectren Energy Delivery of Ohio, Inc., and U.S. Bank Trust National
Association. (Filed and designated in Form 8-K, dated November 18,
2005, File No. 1-16739, as Exhibit 4.1). Form of Fifth
Supplemental Indenture, among Vectren Utility Holdings, Inc., Indiana Gas
Company, Inc., Southern Indiana Gas & Electric Company, Vectren Energy
Delivery of Ohio, Inc., and U.S. Bank Trust National Association. (Filed and
designated in Form 8-K, dated October 16, 2006, File No. 1-16739, as
Exhibit 4.1). Sixth Supplemental Indenture, dated March 10,
2008, among Vectren Utility Holdings, Inc., Indiana Gas Company, Inc.,
Southern Indiana Gas and Electric Company, Vectren Energy Delivery of
Ohio, Inc., and U.S. Bank National Association (Filed and designated in
Form 8-K, dated March 10, 2008, File No. 1-16739, as Exhibit
4.1)
|
4.4
|
Note
purchase agreement, dated October 11, 2005, between Vectren Capital Corp.
and each of the purchasers named therein. (Filed designated in
Form 10-K for the year ended December 31, 2005, File No. 1-15467, as
Exhibit 4.4.)
|
10.1
|
Summary
description of Southern Indiana Gas and Electric Company's nonqualified
Supplemental Retirement Plan (Filed and designated in Form 10-K for the
fiscal year 1992, File No. 1-3553, as Exhibit 10-A-17.) First
Amendment, effective April 16, 1997 (Filed and designated in Form 10-K for
the fiscal year 1997, File No. 1-3553, as Exhibit
10.29.).
|
10.2
|
Southern
Indiana Gas and Electric Company 1994 Stock Option Plan (Filed and
designated in Southern Indiana Gas and Electric Company's Proxy Statement
dated February 22, 1994, File No. 1-3553, as Exhibit
A.)
|
10.3
|
Vectren
Corporation At Risk Compensation Plan effective May 1, 2001,(as amended
and restated s of May 1, 2006). (Filed and designated in
Vectren Corporation’s Proxy Statement dated March 15, 2006, File No.
1-15467, as Appendix H.)
|
10.4
|
Vectren
Corporation Non-Qualified Deferred Compensation Plan, as amended and
restated effective January 1, 2001. (Filed and designated in
Form 10-K, for the year ended December 31, 2001, File No. 1-15467, as
Exhibit 10.32.)
|
10.5
|
Vectren
Corporation Nonqualified Deferred Compensation Plan, effective January 1,
2005. (Filed and designated in Form 8-K dated September 29,
2008, File No. 1-15467, as Exhibit
10.3.)
|
10.6
|
Vectren
Corporation Unfunded Supplemental Retirement Plan for a Select Group of
Management Employees (As Amended and Restated Effective January 1,
2005).(Filed and designated in Form 8-K dated December 17, 2008, File No.
1-15467, as Exhibit 10.1.)
|
10.7
|
Vectren
Corporation Nonqualified Defined Benefit Restoration Plan (As Amended and
Restated Effective January 1, 2005). (Filed and designated in Form 8-K
dated December 17, 2008, File No. 1-15467, as Exhibit
10.2.)
|
10.8
|
Vectren
Corporation Change in Control Agreement between Vectren Corporation and
Niel C. Ellerbrook dated as of March 1, 2005. (Filed and
designated in Form 8-K dated March 1, 2005, File No. 1-15467, as Exhibit
99.1.). Amendment Number One to the Vectren Corporation Change
in Control Agreement, effective as of March 1, 2005 between Vectren
Corporation and Niel C. Ellerbrook (Filed and designated in Form 8-K dated
September 29, 2008, File No. 1-15467, as Exhibit
10.1.)
|
10.9
|
Vectren
Corporation At Risk Compensation Plan specimen restricted stock grant
agreement for officers, effective January 1, 2006. (Filed and
designated in Form 8-K, dated February 27, 2006, File No. 1-15467, as
Exhibit 99.1.)
|
10.10 |
Vectren
Corporation At Risk Compensation Plan specimen unit award agreement for
officers, effective January 1, 2009. (Filed and designated in
Form 8-K, dated February 17, 2009, File No. 1-15467, as Exhibit
10.1.)
|
10.11
|
Vectren
Corporation At Risk Compensation Plan specimen restricted stock grant
agreement for officers, effective January 1, 2008. (Filed and
designated in Form 8-K, dated December 28, 2007, File No. 1-15467, as
Exhibit 99.1.)
|
10.12 | Vectren Corporation At Risk Compensation Plan specimen restricted stock units agreeement for officers, effective January 1, 2008. (Filed and designed in Form 8-K, dated December 28, 2007, File No. 1-15467, as Exhibit 99.2.) |
10.13
|
Vectren
Corporation At Risk Compensation Plan specimen Stock Option Grant
Agreement for officers, effective January 1, 2005. (Filed and
designated in Form 8-K, dated January 1, 2005, File No. 1-15467, as
Exhibit 99.2.)
|
10.14
|
Vectren
Corporation specimen employment agreement dated February 1,
2005. (Filed and designated in Form 8-K, dated February 1,
2005, File No. 1-15467, as Exhibit 99.1.) Amendment Number One
to the Specimen Vectren Corporation Employment Agreement between Vectren
Corporation and Executive Officers (Filed and designated in Form 8-K dated
September 29, 2008, File No. 1-15467, as Exhibit 10.2.) The specimen
agreements and related amendments differ among named executive officers
only to the extent severance and change in control benefits are
provided in the amount of three times base salary and bonus for Messrs.
Benkert, Chapman, and Christian and two times for Mr.
Doty.
|
10.15
|
Life
Insurance Replacement Agreement between Vectren Corporation and certain
named officers, effective December 31, 2006. (Filed and
designated in Form 8-K, dated December 31, 2006, File No. 1-15467 as
Exhibit 99.1.)
|
10.16
|
Coal
Supply Agreement for Warrick 4 Generating Station between Southern Indiana
Gas and Electric Company and Vectren Fuels, Inc., effective January 1,
2009. (Filed and designated in Form 8-K dated January 5, 2009,
File No. 1-15467, as Exhibit 10.1.)
|
10.17
|
Coal
Supply Agreement for F.B. Culley Generating Station between Southern
Indiana Gas and Electric Company and Vectren Fuels, Inc., effective
January 1, 2009. (Filed and designated in Form 8-K dated
January 5, 2009, File No. 1-15467, as Exhibit
10.2.)
|
10.18
|
Coal
Supply Agreement for A.B. Brown Generating Station for 410,000 tons
between Southern Indiana Gas and Electric Company and Vectren Fuels, Inc.,
effective January 1, 2009. (Filed and designated in Form 8-K
dated January 5, 2009, File No. 1-15467, as Exhibit
10.3.)
|
10.19
|
Coal
Supply Agreement for A.B. Brown Generating Station for 1 million tons
between Southern Indiana Gas and Electric Company and Vectren Fuels, Inc.,
effective January 1, 2009. (Filed and designated in Form 8-K
dated January 5, 2009, File No. 1-15467, as Exhibit
10.4.)
|
10.20
|
Gas
Sales and Portfolio Administration Agreement between Indiana Gas Company,
Inc. and ProLiance Energy, LLC, effective August 30,
2003. (Filed and designated in Form 10-K, for the year ended
December 31, 2003, File No. 1-15467, as Exhibit
10.15.)
|
10.21
|
Gas
Sales and Portfolio Administration Agreement between Southern Indiana Gas
and Electric Company and ProLiance Energy, LLC, effective September 1,
2002. (Filed and designated in Form 10-K, for the year ended
December 31, 2003, File No. 1-15467, as Exhibit
10.16.)
|
|
|
10.22
|
Formation
Agreement among Indiana Energy, Inc., Indiana Gas Company, Inc., IGC
Energy, Inc., Indiana Energy Services, Inc., Citizens Energy Group,
Citizens Energy Services Corporation and ProLiance Energy, LLC, effective
March 15, 1996. (Filed and designated in Form 10-Q for the
quarterly period ended March 31, 1996, File No. 1-9091, as Exhibit
10-C.)
|
10.23
|
Revolving
Credit Agreement (5 year facility), dated November 10, 2005, among Vectren
Utility Holdings, Inc., and each of the purchasers named
therein. (Filed and designated in Form 10-K, for the year ended
December 31, 2005, File No. 1-15467, as Exhibit
10.24.)
|
10.24
|
Revolving
Credit Agreement (5 year facility), dated November 10, 2005, among Vectren
Capital Corp., and each of the purchasers named therein. (Filed
and designated in Form 10-K, for the year ended December 31, 2005, File
No. 1-15467, as Exhibit 10.25.)
|
10.25
|
Credit
Agreement (1 year facility), dated September 11, 2008, among Vectren
Capital Corp., as borrower, Vectren Corporation, as guarantor, the lenders
named therein, JPMorgan Chase Bank, N.A., and Union Bank of California,
N.A., as co-syndication agents, and Bank of America, N.A., as letter of
credit issuer and administrative agent. (Filed and designated in Form 8-K
dated September 11, 2008, File No. 1-15467, as Exhibit
10.1.)
|
|
31.
Certification Pursuant To Section 302 of the Sarbanes-Oxley Act of
2002
|
|
32.
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
Signature
|
Title
|
Date
|
||
/s/
Niel C. Ellerbrook
|
Chairman,
Chief Executive Officer, and Director
|
February
19, 2009
|
||
Niel
C. Ellerbrook
|
(Principal
Executive Officer)
|
|||
/s/
Jerome A. Benkert, Jr.
|
Executive
Vice President and Chief Financial
|
February
19, 2009
|
||
Jerome
A. Benkert, Jr.
|
Officer
(Principal
Financial Officer)
|
|||
/s/ M.
Susan Hardwick
|
Vice
President, Controller and Assistant Treasurer
|
February
19, 2009
|
||
M.
Susan Hardwick
|
(Principal
Accounting Officer)
|
|||
/s/
John M. Dunn
|
Director
|
February
19, 2009
|
||
John
M. Dunn
|
||||
/s/
John D. Engelbrecht
|
Director
|
February
19, 2009
|
||
John
D. Engelbrecht
|
||||
/s/
Anton H. George
|
Director
|
February
19, 2009
|
||
Anton
H. George
|
||||
/s/
Martin C. Jischke
|
Director
|
February
19, 2009
|
||
Martin
C. Jischke
|
||||
/s/
Robert L. Koch II
|
Director
|
February
19, 2009
|
||
Robert
L. Koch II
|
||||
/s/
William G Mays
|
Director
|
February
19, 2009
|
||
William
G. Mays
|
||||
/s/
J. Timothy McGinley
|
Director
|
February
19, 2009
|
||
J.
Timothy McGinley
|
||||
/s/
Richard P. Rechter
|
Director
|
February
19, 2009
|
||
Richard
P. Rechter
|
||||
/s/
R. Daniel Sadlier
|
Director
|
February
19, 2009
|
||
R.
Daniel Sadlier
|
||||
/s/
Richard W. Shymanski
|
Director
|
February
19, 2009
|
||
Richard
W. Shymanski
|
||||
/s/
Michael L Smith
|
Director
|
February
19, 2009
|
||
Michael
L Smith
|
||||
/s/
Jean L. Wojtowicz
|
Director
|
February
19, 2009
|
||
Jean
L. Wojtowicz
|